The Sinking Fund is a document set up to establish a reserve of funds to cover future expenditure for the replacement and/or maintenance and repair of building components at the end of their expected life. A sinking fund forecast will also include replacement of items of a major capital nature.
The sinking fund budget will fix the contribution amount required to cover the capital expenditure of the items listed above.
Sinking Fund Forecasts must satisfy the current requirements of the Body Corporate and Community Management Act 1997 (QLD) and Strata Scheme Management Act 1996. Effective 1996, all Strata Schemes are required by law to have a 10 year Sinking Fund Forecast in place. The Sinking Fund Forecast is based on a reasonable estimate of the expected life of the components listed in the forecast.
A Sinking Fund Forecast considers shared facilities in the body corporate complex as well as items that impact the look and feel of the property. The forecast pays particular attention to items that may require repair or maintenance for effective operation or to maintain a neat and tidy appearance.
Common items on the forecast list can include:
Sinking Fund Forecasts should be updated at least every three (3) years to take into account current market conditions.
It is also advisable to update your forecast whenever major works, painting etc is carried out to retain a realistic reserve and contribution levy.
The 10 year Sinking Fund Forecast must be approved by the owners and should be regularly updated at a period not exceeding 5 years from the initial report date. Where Seymour Consultants have already prepared an initial report you will only be charged a revision fee.
With Seymour Consultants your sinking fund forecast can include:
Our personalised approach takes into consideration specific building criteria and does not rely solely on computer generated figures.